Thursday, February 13, 2020

Sold Frasers Commercial Trust

I just sold all 7,011 shares of Frasers Commercial Trust (FCOT) in SRS portfolio today on 13 Feb 2020.

I bought 6,800 shares at $1.47 in Apr 2019 and collected 4 rounds of dividends - 2 rounds in scrips dividend shares and 2 rounds in cash. Total returns in 10 months is $2.1k or 21%.

Main reason for selling is due to the merger with Frasers Logistics & Industrial trust (FLT) . As I already own 12,000 shares of FLT in CDP, I do not want another 8,644 shares of the same thing in SRS after merger. 

Another reason is that FLT do not have scrip dividend scheme, which is an inducing factor when I bought FCOT. Original intention is to collect scrip dividend shares for the long term enjoying 6.8% yield compounding and reinvestment. 

Third reason is the limited upside of FCOT till delist. Instead of waiting for the merger to complete, why not lock down the profits, encash into SRS account and hunt for new opportunities? There are potential preys such as ComfortDelGro, SATS, Thai Beverage, OUE Commercial Trust and banks just to name a few to catch and keep hold for the long term. I am on the lookout for them but ideally I would like to add on to SATS or OCBC in my SRS portfolio.

I am contemplating selling of Keppel Reit and ST Eng to lock down profits in my SRS. Meanwhile, I am also waiting for the dividends to trickle in to boost my war chest. On the Covid virus, it is still early to know what impact it has on the economy and businesses. I do still believe a recession is looming and there may be a deep correction to the markets when the truth is revealed. Hence sometimes it is best to stay on the sidelines and don't do anything. Thanks for reading!

With Love & Peace,

No comments: